Office package: Public and products liability Policy wording

Transcription

1 Office package: Public and products liability The General terms and conditions and the following terms and conditions all apply to this section. Special definitions for this section Bodily injury Defence costs Denial of access Inefficacy Personal injury Pollution Products Property damage Tool of trade You / your Death, or any bodily or mental injury or disease of any person. Costs incurred with our prior written agreement to investigate, settle or defend a claim against you. Nuisance, trespass or interference with any easement or right of air, light, water or way. The failure of any of your products or any service, process or system provided or managed by you to perform the function or serve the purpose for which it was intended. False arrest, detention or imprisonment; malicious prosecution; wrongful entry into, or eviction of a person from, a room, dwelling or premises that they occupy; invasion of any rights of privacy. Any pollution or contamination, including noise, electromagnetic fields, radiation and radio waves. Any goods sold, supplied, distributed, manufactured, constructed, erected, installed, altered, tested, serviced, maintained, repaired, cleaned or treated by you. Physical loss of or damage to or destruction of tangible property including the resulting loss of use of such property. Mobile plant or equipment being used where insurance or security is not required under the provisions of any road traffic legislation. Also includes any person who was, is or during the period of insurance becomes your partner or director or senior manager in actual control of your operations. What is covered Claims against you Overseas personal liability Claims against principals If, as a result of your business, any party brings a claim against you for: a. bodily injury or property damage occurring during the period of insurance; b. personal injury or denial of access committed during the period of insurance, we will indemnify you against the sums you have to pay as compensation. This includes a claim against any employee or volunteer worker of yours when they are acting on your behalf in whatever capacity. We will also pay defence costs but we will not pay costs for any part of a claim not covered by this section. We will indemnify you and if you so request, any of your directors, partners or any employee or spouse of such person against legal liability as a result of bodily injury, property damage or personal injury incurred in a personal capacity whilst temporarily outside the United Kingdom of Great Britain and Northern Ireland, the Channel Islands or the Isle of Man other than a. where indemnity arises out of the ownership or occupation of land or buildings; b. where indemnity is provided by any other insurance. If, as a result of your business, any party brings a claim, which falls within the scope of What is covered, Claims against you, against a customer of your business for whom you are providing services under contract or agreement and you are liable for that claim, we will treat such claim as if made against you and make the same payment to such customer that we would have made to you, provided that the party to be indemnified: WD-PIP-UK-POP(3)

2 Office package: Public and products liability a. has not, in our reasonable opinion, caused or contributed to the claim against them; b. accepts that we can control the claim s defence and settlement in accordance with the terms of this section; c. has not admitted liability or prejudiced the defence of the claim before we are notified of it; d. gives us the information and co-operation we reasonably require for dealing with the claim. Cross liabilities Criminal proceedings costs If more than one insured is named in the schedule, we will deal with any claim as though a separate policy had been issued to each of them provided that our liability in the aggregate shall not exceed the limit of indemnity shown in the schedule. If any governmental, administrative or regulatory body brings any criminal action against you during the period of insurance for any breach of statute or regulation directly relating to any actual or potential claim under this section, we will pay the costs incurred with our prior written consent to defend such an action against you or any employee of yours. Additional cover Court attendance compensation If any person within the definition of you has to attend court as a witness in connection with a claim against you covered under this section, we will pay you compensation for each day, or part of a day that their attendance is required by our solicitor. What is not covered A. We will not make any payment for any claim or loss directly or indirectly due to: Property for which you are responsible 1. loss of or damage to any property belonging to you or which at the time of the loss or damage is in your care, custody or control. This does not apply to: a. employees or visitors vehicles or effects while on your premises; b. premises, including their contents, which are not owned or rented by you, where you are temporarily carrying out your business; c. premises rented to you, for loss or damage not insurable under property insurance policies and for which you would not be liable other than by the lease or other agreement. 2. the ownership, possession, maintenance or use by you or on your behalf of any aircraft or other aerial device, hovercraft, watercraft (other than hand propelled or sailing craft less than 20 feet in length in inland or territorial waters) or any mechanically propelled vehicles and their trailers. This does not apply to: a. any tool of trade; b. the loading or unloading of any vehicle off the highway. Injury to employees 3. bodily injury to any person arising out of and in the course of their employment under a contract of service or apprenticeship with you. Pollution 4. a. i. any pollution of buildings or other structures or of water or land or the atmosphere; or Computer virus 5. transmission of a computer virus. ii. any bodily injury or property damage directly or indirectly caused by pollution, unless caused by a sudden, identifiable, unintended and unexpected incident which occurs in its entirety at a specific time and place during the period of insurance; b. any pollution occurring in the United States of America or Canada. Professional advice 6. designs, plans, specifications, formulae, directions or advice prepared or given by you. WD-PIP-UK-POP(3)

3 Office package: Public and products liability Your products 7. the costs of recalling, removing, repairing, reconditioning or replacing any product or any of its parts. Inefficacy 9. inefficacy. 8. a. any products relating to aircraft, including missiles or spacecraft, and any ground support or control equipment used in connection with such products; b. any products installed in aircraft, including missiles or spacecraft, or used in connection with such craft, or for tooling used in their manufacture including groundhandling tools and equipment, training aids, instruction manuals, blueprints, engineering or other data, advice and services and labour relating to such craft or products. Deliberate or reckless acts Contracts Date recognition War, terrorism and nuclear Asbestos 10. any act, breach, omission or infringement you deliberately, spitefully, dishonestly or recklessly commit, condone or ignore which could reasonably be expected to cause injury or damage to another party even if such injury or damage is of a different degree or type than could reasonably have been anticipated. 11. your liability under any contract which is greater than the liability you would have at law without the contract. 12. date recognition. 13. war, terrorism or nuclear risks. 14. asbestos risks. B. We will not make any payment for: Restricted recovery rights 1. that part of any claim where your right of recovery is restricted by any contract. Non-compensatory payments 2. fines and contractual penalties, punitive or exemplary damages. Claims outside the applicable courts Claims outside the geographical limits 3. any claim, including arbitration, brought outside the countries set out in the schedule under applicable courts. This applies to proceedings in the applicable courts to enforce, or which are based on, a judgment or award from outside the applicable courts. 4. any claim brought against you resulting from work you undertake in any country outside the geographical limits. How much we will pay We will pay up to the limit of indemnity shown in the schedule for each actual or threatened claim, unless limited below. We will also pay for defence costs. However, if a payment greater than the limit of indemnity has to be made for a claim our liability for defence costs will be limited to the same proportion that the limit of indemnity bears to the amount paid. You must pay the excess for each claim. All claims which arise from the same original cause, a single source or a repeated or continuing shortcoming in your work will be regarded as one claim. Special limits Products Pollution For claims arising from your products, the most we will pay is a single limit of indemnity for the total of all such claims. We will also pay for defence costs for those claims until the limit of indemnity has been exhausted. You must pay the relevant excess shown in the schedule. For claims arising from pollution, the most we will pay is a single limit of indemnity for the total of all such claims and their defence costs, including any claims forming part of a series of other claims regarded as one claim under this section. The most we will pay for defence costs in relation to pollution claims is the amount shown in the schedule. You must pay the relevant excess shown in the schedule.

4 Office package: Public and products liability Claims brought against you in USA or Canada Criminal proceedings costs Court attendance compensation Paying out the limit of indemnity If it is stated in the schedule that cover is provided for claims brought in the United States of America or Canada, the most we will pay is a single limit of indemnity for the total of all such claims and their defence costs. You must pay the relevant excess shown in the schedule. The most we will pay for the costs to defend criminal proceedings is the amount shown in the schedule. This applies to all actions brought against you during the period of insurance. We will pay you the following compensation for each day, or part day: 1. You or your partner or director Any other employee 100 The most we will pay for the total of all court attendance compensation is 10,000. At any stage we can pay you the applicable limit of indemnity or what remains after any earlier payment from that limit. We will pay defence costs already incurred at the date of our payment. We will then have no further liability for those claims or their defence costs. Your obligations We will not make any payment under this section: If a problem arises 1. unless you notify us promptly of any claim or threatened claim against you. For claims arising out of bodily injury, you must notify us immediately and in any event within 7 days of a claim or anything which may give rise to a claim under this section. At our request, you must confirm the facts in writing within 30 days with as much information as is available. You should make this notification directly to us (and your insurance adviser, if you have one) as follows, ensuring you quote your policy number: By to: liability.claims@hiscox.com; or By post to: Hiscox Liability Claims, 25 London Road, Sittingbourne ME10 1PE. 2. unless you notify us as soon as practicable of: a. your discovery that products are defective; b. any threatened criminal action by any governmental, administrative or regulatory body. 3. if, when dealing with your client or a third party, you admit that you are liable for what has happened or make any offer, deal or payment, unless you have our prior written agreement. You must also not reveal the amount of cover available under this insurance, unless you had to give these details in negotiating a contract with your client or have our prior written agreement. Correcting problems We will not make any payment for products claims if you fail to take reasonable steps to remedy or rectify, at your expense, any defect or failure in the goods or services you have supplied to a client, customer or distributor. Control of defence We have the right, but not the obligation, to take control of and conduct in your name, the investigation, settlement or defence of any claim. If we think it necessary we will appoint an adjuster, solicitor or any other appropriate person to deal with the claim. We may appoint your own solicitor but on a similar fee basis as our solicitor and only for work done with our prior written approval. Proceedings will only be defended if there is a reasonable prospect of success and taking into account the commercial considerations of the costs of defence.

5 Office package: Employers liability The General terms and conditions and the following terms and conditions all apply to this section. Special definitions for this section Bodily injury Defence costs Employee Terrorism Death or any bodily or mental injury or disease. Costs incurred with our prior written agreement to investigate, settle or defend a claim against you. Any person normally resident in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, the Isle of Man or Republic of Ireland working for you in connection with your business who is: a. employed by you under a contract of service or apprenticeship; b. hired to or borrowed by you; c. self-employed and working on a labour only basis under your control or supervision; d. engaged by labour only sub contractors; e. a labour master or a person supplied by him; f. engaged under a work experience or training scheme; g. a voluntary helper. An act, including but not limited to the use of force or violence and/or the threat of force or violence, of any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. What is covered Claims against you Criminal proceedings Claims against principals If any employee brings a claim against you for bodily injury caused to them during the period of insurance arising out of their work for you within the geographical limits, we will indemnify you against the sums you have to pay as compensation. The amount we pay will include defence costs but we will not pay costs for any part of a claim not covered by this section. If any governmental, administrative or regulatory body brings any criminal action against you during the period of insurance for any breach of statute or regulation directly relating to any actual or potential claim under this section, we will pay the costs incurred with our prior written consent to defend such an action against you. If, as a result of your business, any party brings a claim, which falls within the scope of What is covered, Claims against you, against a customer of your business for whom you are providing services under contract or agreement and you are liable for that claim, we will treat such claim as if made against you and make the same payment to such customer that we would have made to you, provided that the party to be indemnified: a. has not, in our reasonable opinion, caused or contributed to the claim against them; b. accepts that we can control the claim s defence and settlement in accordance with the terms of this section; c. has not admitted liability or prejudiced the defence of the claim before we are notified of it; d. gives us the information and co-operation we reasonably require for dealing with the claim.

6 Office package: Employers liability Unsatisfied court judgments If any employee obtains a judgment for damages following bodily injury against any company or individual operating from premises within the United Kingdom of Great Britain and Northern Ireland, the Isle of Man or the Channel Islands and that judgment remains unpaid for more than 6 months, we will pay to the employee at your request the amount of any unpaid damages and awarded costs provided that: a. the bodily injury is caused during the period of insurance and arises out of and in the course of his or her employment in your business; and b. we would have covered your liability if you had caused the bodily injury; and c. there is no appeal outstanding; and d. the employee assigns his or her judgment to us. Additional cover Court attendance compensation If any person within the definition of you has to attend court as a witness in connection with a claim against you covered under this section, we will pay you compensation for each day, or part of a day, that their attendance is required by our solicitor. What is not covered We will not make any payment for: 1. Any claim or loss directly or indirectly due to: Deliberate or reckless acts a. any act, breach or omission you deliberately or recklessly commit, condone or ignore. Offshore b. any bodily injury caused to any of your employees while they are offshore. An employee is regarded as being offshore from the moment they board any form of transport at the departure point for an offshore rig or platform until the moment they disembark on their return from the rig or platform. Road traffic legislation c. any bodily injury to any employee while being carried in or upon, or entering or getting onto, or alighting from a vehicle for which insurance or security is required under any road traffic legislation or where you are entitled to indemnity from any other source. Claims outside the applicable courts 2. Any claim, including arbitration, brought outside the countries set out in the schedule under applicable courts. This applies to proceedings in the applicable courts to enforce, or which are based on, a judgment or award from outside the applicable courts. How much we will pay We will pay up to the limit of indemnity shown in the schedule, unless limited below, for all claims and their defence costs which arise from the same accident or event. Special limits Terrorism Criminal proceedings costs Court attendance compensation The most we will pay for claims and their defence costs arising from terrorism is the amount shown in the schedule. If we decide that this limit applies to a claim, it is your responsibility to prove that the claim does not arise from terrorism. We will pay up to the amount shown in the schedule for the costs to defend criminal proceedings. This applies to all actions brought against you during the period of insurance. We will pay you the following compensation for each day, or part day: 1. You or your partner or director Any other employee 100 The most we will pay for the total of all court attendance compensation is 10,000.

7 Office package: Employers liability Your obligations We will not make any payment under this section: If a problem arises 1. unless you notify us promptly of any claim or threatened claim against you. For claims arising out of bodily injury, you must notify us immediately and in any event within 7 days of a claim or anything which may give rise to a claim under this section. At our request, you must confirm the facts in writing within 30 days with as much information as is available. You should make this notification directly to us (and your insurance adviser, if you have one) as follows, ensuring you quote your policy number: By to: liability.claims@hiscox.com By post to: Hiscox Liability Claims, 25 London Road, Sittingbourne ME10 1PE 2. unless you notify us as soon as practicable of any threatened criminal action by any governmental, administrative or regulatory body. 3. if, when dealing with your employee or a third party, you admit that you are liable for what has happened or make any offer, deal or payment, unless you have our prior written agreement. Control of defence We have the right, but not the obligation, to take control of and conduct in your name, the investigation, settlement or defence of any claim. If we think it necessary we will appoint an adjuster, solicitor or any other appropriate person to deal with the claim. We may appoint your own solicitor but on a similar fee basis as our solicitor and only for work done with our prior written approval. Proceedings will only be defended if there is a reasonable prospect of success and taking into account the commercial considerations of the costs of defence. Compulsory insurance clause This insurance is in accordance with the provisions of any law relating to compulsory insurance of liability to employees in the United Kingdom of Great Britain and Northern Ireland, the Isle of Man, the Channel Islands or the Continental Shelf around these countries. You must repay all payments we make which we would not have been liable to pay in the absence of such law.

8 Office package: Property definitions Special definitions for all property sections Amount insured Business premises Damage Earth movement Flood Identity fraud Office Property Standard construction Storm Subsidence Venue The most we will pay as shown in the schedule. Unless we say otherwise, the amounts apply to each incident of loss and will be automatically restored to the full amount after we pay a loss provided you carry out our recommendations to prevent further loss or damage. The space you occupy at the premises shown in the schedule located in a building of standard construction unless otherwise notified to us and to which we have confirmed our agreement. This includes any outbuildings you occupy on the same premises. Accidental physical loss or physical damage. Any natural or man-made earth movement including, but not limited to earthquake, seaquake, volcanic eruption or subsidence and any ensuing tsunami. Rising surface or tidal water, or the overflow of water from any natural or artificial watercourse (other than water tanks, apparatus or pipes), whether driven by storm or not. Someone, or a group of people, knowingly using a means of identification belonging to you without your knowledge or authorisation and with the intention of committing or helping someone else to commit an illegal act. The office space you occupy at the premises shown in the schedule located in a building of standard construction unless otherwise notified to us and to which we have confirmed our agreement. The office includes any outbuildings and annexes you occupy on the same premises. Tangible property. Built of brick, stone or concrete and roofed with slate, tiles, concrete, metal, asbestos or any other non-combustible material. High winds of a destructive nature, rainstorm, hailstorm or snowstorm. Subsidence, landslip or heave. The space you occupy at the premises shown in the schedule located in a building of standard construction unless otherwise notified to us and to which we have confirmed our agreement. This includes any outbuildings you occupy on the same premises.

9 Office package: Property Contents The General terms and conditions, the Property definitions and the following terms and conditions all apply to this section. Special definitions for this section Contents Computers Hacker Money Personal effects Rent payable Software The contents of your office used in connection with the business which belong to you or for which you are legally responsible, including: a. computers; b. goods held in trust, stock and samples; c. works of art or precious metals; d. tenants improvements, decorations, fixtures and fittings and general contents including, if attached to the building, external signs, aerials and satellite dishes; e. pipes, ducting, cables, wires and associated control equipment within the business premises and extending to the public mains. Money and personal effects are not included within this definition. Computers and ancillary equipment, including software and data carrying media, but excluding data or information entered by you or on your behalf. Anyone who maliciously targets you and gains unauthorised access to your website, intranet, computer system, network, telephony equipment or data that you hold electronically. Cash, bank and currency notes, cheques, travellers cheques, postal orders, money orders, crossed bankers drafts, current postage stamps, savings stamps and certificates, National Insurance stamps, trading stamps, gift tokens, customer redemption vouchers, company sales vouchers, credit card counterfoils, travellers tickets, VAT purchase receipts, contents of franking machines and, insofar as they are not otherwise insured, holiday-with-pay stamps and luncheon vouchers, all belonging to you. Articles worn, used or carried about the person, excluding cash, bank and currency notes and jewellery. Rent for the office that you must legally pay whilst the office or any part of it is unusable as a result of damage insured by this section. Programmes which run your computers, including both your own operating programmes and application programmes used in the course of your business. What is covered Additional cover We will insure you against damage occurring during the period of insurance to contents contained in the office and any other items specified in the schedule. The following are also provided up to the amount shown in the schedule: Costs following glass breakage 1. The necessary and reasonable costs you incur following breakage or scratching during the period of insurance of glass, which belongs to you or for which you are legally responsible, for: a. temporary boarding up; b. repair of window frames or removal or replacement of fixtures and fittings in the course of replacing the glass; c. replacement lettering or other ornamental work and alarm foil on glass. Additions to contents 2. Damage occurring during the period of insurance to any additional contents, provided you tell us the additional values as soon as possible and pay the appropriate premium. Money 3. Damage occurring during the period of insurance to money held in connection with the business: a. in the office while open for business;

10 Office package: Property Contents b. in the office in a locked safe; c. in transit within the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, the Isle of Man and the Republic of Ireland or whilst at the home of any partner, director or employee of yours. Identity fraud 4. The following reasonable and necessary expenses you have to pay solely as a direct result of an identity fraud occurring during the period of insurance: a. solicitor s fees to defend a claim against you by financial institutions, to remove incorrect judgments, to challenge a credit rating or to witness your signature; b. the cost of sending letters by certified post and making telephone calls to the police, financial institutions and credit agencies; c. fees charged when you re-apply for a commercial loan that was originally rejected. Personal effects 5. Damage occurring in the office during the period of insurance to the personal effects of your employees or visitors to the office provided they are not insured elsewhere. Reconstitution of electronic data Reconstitution of other business documents 6. The reasonable cost of reconstituting the data you need to continue your business, if your electronic business records and electronic data have been lost or distorted as a direct result of damage covered under this section. 7. The reasonable costs of replacing or reconstituting your business documents that are not held electronically and which you need to continue your business, if such documents have been lost or destroyed as a direct result of damage covered under this section. Lock replacement 8. The costs you incur to replace locks and keys necessary to maintain the security of your business premises or safes following theft of keys involving force and violence occurring during the period of insurance. Building damage by theft 9. The cost of repairing damage occurring during the period of insurance to the office buildings caused by theft or attempted theft and for which you are legally liable. Personal assault following robbery or attempted robbery Metered water and fuel Undamaged tenant s improvements Contents temporarily elsewhere Contents kept at home 10. Compensation as shown in the schedule if any partner, director or employee of yours is physically injured in the course of your business in a robbery or attempted robbery occurring during the period of insurance either at the office or within the geographical limits and dies or is permanently disabled solely and directly as a result of the injury within two years from the date it happened. This cover only applies to people aged between 16 and 70 at the start of the period of insurance. 11. The cost that you incur for any metered water and fuel used at the business premises when such water or fuel has been accidentally released or rendered unusable for its intended purpose as a direct result of damage occurring during the period of insurance to any storage tank, equipment or piping resulting from a cause not otherwise excluded. 12. Tenant s improvements if your lease is cancelled by the lessor as a consequence of damage occurring during the period of insurance to the business premises, provided the cancellation is a valid condition of your lease and tenant s improvements are an insured item under this policy. 13. Damage occurring during the period of insurance to contents, excluding laptops, mobile phones and other portable equipment, temporarily elsewhere in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, the Isle of Man and the Republic of Ireland, including whilst in transit. 14. Damage occurring during the period of insurance to contents used and kept at the home of any partner, director or employee of yours for the purposes of the business, provided the home is in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, the Isle of Man or the Republic of Ireland.

11 Office package: Property Contents What is not covered We will not make any payment for: 1. damage caused by: a. wear and tear, inherent defect, rot, fungus, mould, vermin or infestation, or any gradually operating cause; b. dryness or humidity, being exposed to light or extreme temperatures, unless this is a result of storm or fire; c. coastal or river erosion; d. a rise in the water table; e. theft from an unattended vehicle unless the item is out of sight in a locked boot; f. frost, other than damage due to water leaking from burst pipes forming part of the permanent internal plumbing provided the office is occupied and in use; g. date recognition; h. a virus or hacker. 2. damage to property being cleaned, worked on or maintained. 3. damage to any electrical or mechanical plant or equipment (other than computers) directly resulting from its own breakdown, explosion or collapse. 4. breakdown of computers unless they are subject to a manufacturer s guarantee or a maintenance contract providing free parts and labour in the event of a breakdown. 5. loss or distortion of information resulting from error or malfunction of computers. 6. the value to you of any lost or distorted information. 7. misuse, inadequate or inappropriate maintenance, faulty workmanship, defective design or the use of faulty materials. 8. unexplained loss or disappearance or inventory shortage. 9. loss due to clerical or accounting errors. 10. loss by fraud or dishonesty of any partner, director or employee of yours, unless the loss is notified to us within 10 working days of its discovery by you. 11. financial loss due to your parting with title or possession of property or rights to property prior to receiving payment in full. 12. any indirect losses which result from the incident which caused you to claim. 13. pollution or contamination except damage to insured property which is not otherwise excluded and which is caused by: a. pollution or contamination which itself results from insured damage covered under this section, or b. damage which would otherwise be covered under this section which itself was caused by pollution or contamination. 14. a. damage directly or indirectly caused by, resulting from or in connection with terrorism or any action taken to control, prevent or respond to terrorism; b. damage in Northern Ireland directly or indirectly caused by civil commotion. If there is any dispute between you and us over the application of this exclusion, it will be for you to show that the exclusion does not apply. 15. war, confiscation and nuclear risks. 16. the amount of the excess.

12 Office package: Property Contents How much we will pay Repair and replacement Debris removal Under insurance Index linking Personal assault following robbery or attempted robbery Pairs and sets Other interests We will pay up to the amount insured shown in the schedule unless limited below or in the schedule. At our option we will repair, replace or pay for any lost or damaged items on the following basis: 1. for contents, other than stock and samples or personal effects, the cost of repair or replacement as new; 2. for stock and samples other than second hand stock or goods held in trust, the cost of repair or replacement at the cost price to you; 3. for second hand stock, other than goods held in trust, the cost of repair or replacement at the trade market value; 4. for goods held in trust, the lesser of: i. your liability in respect of the goods held in trust; ii. the cost of repair or replacement at the trade market value of such goods; 5. for personal effects, the cost of repair or replacement as new, but not more than the amount shown in the schedule for each incident of loss. We will pay the necessary and reasonable costs and expenses you incur to remove debris of contents from the premises or the area immediately adjacent, following damage insured by this section. If, at the time of damage, the amount insured is less than 85% of the total value of the contents, the amount we pay will be reduced in the same proportion as the under insurance. The amount insured for contents will be adjusted monthly in line with any increase in nationally published indices. We will not reduce the amount insured without your consent. We will not pay compensation under more than one heading in the schedule for the same injury. If any contents which have an increased value because they form part of a pair or set are damaged any payment we make will take account of the increased value. Any payment we make will take into account the interest of any party having an insurable interest in the contents insured, provided you have advised us of the nature and extent of the interest together with the name and address of that interested party. Special limits Fraud and dishonesty Computer breakdown The most we will pay for all losses occurring during the period of insurance arising from the fraud or dishonesty of any partner, director or employee of yours is the amount shown in the schedule. The most we will pay for any loss arising from breakdown of computers during the period of insurance is the amount shown in the schedule. This limit is an aggregate limit applying across the Contents and Business interruption sections of this policy. Your obligations If any damage occurs We will not make any payment under this section unless you notify us promptly of any damage which might be covered. You must report to the police, as soon as reasonably possible, any damage arising from theft, arson, malicious damage, riot or civil commotion and obtain a crime reference from them. You must arrange for urgent repairs to be done immediately. Before any other repair work begins we have the right to inspect the damaged property. We will tell you if we want to do this.

13 Office package: Property Contents Backing up electronic data Protections Unoccupancy Building works We will not make any payment for reconstitution of electronic data unless you take all reasonable steps to make back-up copies of all such data at least once a week and keep the copies away from the office. We will not make any payment under this section unless all fire alarms, security systems and physical protections notified to us are in full operation whenever the office is left unattended. You must also advise us as soon as reasonably possible if for any reason a system is not working properly. We may then vary the terms and conditions of this policy. All systems must be regularly serviced under contract by a reputable company at least annually. You must tell us immediately if the office will be left unoccupied or will not be used for more than 30 consecutive days. If you do not, we will not make any payment for damage occurring while the buildings are unoccupied. We may change the terms and conditions of this policy or impose additional requirements that you must carry out. If we impose additional requirements we will tell you the timeframes within which you must carry them out. If you intend to undertake any work to extend, renovate, build or demolish any part of the buildings and the estimated cost is more than 75,000, you must tell us about the work at least 30 days before the work starts and before you enter into any contract for the works. We may then amend the terms of this policy. If you do not tell us about such work, we may not pay for any damage directly or indirectly caused by or resulting from the building works. You do not have to tell us if the work is for redecoration only.

14 Office package: Property - Business interruption Please read the schedule to see if your loss of income, loss of gross profit, increased costs of working or additional increased costs of working are covered. The General terms and conditions, the Property definitions and the following terms and conditions all apply to this section. Special definitions for this section Additional increased costs of working The additional costs and expenses reasonably incurred by you with our prior consent in order to continue your business or minimise your loss of income or loss of gross profit during the indemnity period and not limited to the reduction in income or gross profit saved. Annualised amount insured The amount insured divided by the indemnity period multiplied by 12. Gross profit Income Increased costs of working Indemnity period Insured damage Notifiable human disease Rate of gross profit Rent Uninsured working expenses The difference between the sum of your income, closing stock and work in progress and the sum of your opening stock, work in progress and uninsured working expenses. The money paid or payable to you in respect of your business carried out from your office. The costs and expenses necessarily and reasonably incurred by you for the sole purpose of minimising the reduction in income to your business during the indemnity period, but not exceeding the reduction in income saved. The period beginning at the date of the insured damage, or the date the restriction is imposed, and lasting for the period during which your income is affected as a result of such insured damage or restriction, but for no longer than the number of months shown in the schedule. Damage to property provided that: a. the damage is not otherwise excluded by the Buildings or Contents section of this policy; and b. payment has been made or liability admitted by the insurer under any insurance covering such damage. Any human infectious or human contagious disease, an outbreak of which must be notified to the local authority. The percentage produced by dividing gross profit by your income during the financial year immediately before the date of any insured damage. Rent: a. for the office that you must legally pay whilst the office or any part of it is unusable as a result of insured damage; b. that you cannot legally recover from your tenants whilst the buildings or any part are unusable as a result of insured damage. Purchases less discounts received, bad debts, rent and any other item described as an uninsured expense in the schedule. What is covered Financial losses from insured damage We will insure you for your financial losses and any other items specified under this section in the schedule, resulting solely and directly from an interruption to your business caused by: 1. insured damage to property: a. insured under the Buildings or Contents section of this policy; or b. insured elsewhere, provided the damage occurred whilst the property was contained in the office; Denial of access 2. insured damage to property in the vicinity of the office which prevents or hinders your access to the office;

15 Office package: Property - Business interruption Suppliers 3. insured damage, other than damage caused by flood or earth movement, arising at the premises of one of your suppliers operating and based in the European Union, other than water, gas, electricity or telecommunications services; Public utilities 4. failure in the supply of water, gas, electricity or telecommunications services supplied by a supplier operating and based in the European Union to the office for more than 24 consecutive hours caused by insured damage, other than damage caused by flood or earth movement, to any land based premises of the supply authority or the terminal feed to your office or business premises; Public authority 5. your inability to use the office due to restrictions imposed by a public authority following: a. a murder or suicide; b. an occurrence of a notifiable human disease; c. injury or illness of any person traceable to food or drink consumed on the premises; d. vermin or pests at the premises. What is not covered 1. We will not make any payment for any interruption to your business directly or indirectly caused by, resulting from or in connection with terrorism. 2. We will not make any payment under this section if your business is discontinued permanently or if a liquidator or receiver is appointed. How much we will pay Loss of income Loss of gross profit Outstanding debts Accountant s charges Under insurance Business trends We will pay up to the amount insured unless limited below or in the schedule. We will pay for no longer than the period shown in the schedule against each item insured. If you are accountable to the tax authorities for Value Added Tax, the amount we pay will be exclusive of such tax. The amount we pay for each item will be calculated as follows: The difference between your actual income during the indemnity period and the income it is estimated you would have earned during that period or, if this is your first trading year, the difference between your income during the indemnity period and during the period immediately prior to the loss, less any savings resulting from the reduced costs and expenses you pay out of your income during the indemnity period. We will also pay for increased costs of working. The sum produced by applying the rate of gross profit to any reduction in income during the indemnity period, less any business expenses or charges which cease or are reduced. We will also pay for increased costs of working. Any of your outstanding debts which you are unable to recover as a direct result of insured damage to your accounting records. The amount we will pay for loss of income, or loss of gross profit if applicable, includes the reasonable charges you pay to your professional accountant for producing information we require in support of a request for settlement under this section. If the annualised amount insured is less than 85% of your actual income, or your actual gross profit if applicable, during the 12 months immediately preceding the date of the insured damage or restriction, the amount we pay will be reduced in the same proportion as the under insurance. The amount we pay for loss of income or loss of gross profit will be amended to reflect any special circumstances or business trends affecting your business, either before or after the loss, in order that the amount paid reflects as near as possible the result that would have been achieved if the insured damage or restriction had not occurred.

16 Office package: Property - Business interruption Special limits Computer breakdown The most we will pay for any loss arising from breakdown of computers during the period of insurance is the amount shown in the schedule. This limit is an aggregate limit applying across the Contents and Business interruption sections of this policy. Your obligations If any damage occurs Property insurance Accounts records We will not make any payment under this section unless you notify us promptly of any damage or event which might prevent or hinder you from carrying on your business. Where the damage involves property you own or are legally responsible for, we will not make any payment unless you have property insurance in force covering the damage and payment has been made, or liability admitted, under that insurance for the damage. With regard to breakdown damage to computers and ancillary equipment, this requirement is satisfied if you have in force a manufacturer s guarantee or a maintenance contract providing free parts and labour in the event of breakdown. We will not make any payment for outstanding debts unless you keep a record of all amounts owed to you and keep a copy of the record away from the office.